Then all you need is your equipment. Think of the items you would use in an office at a company, and transfer that to your set-up. So, the most important things would be a computer, a separate business telephone line, an all-in-one printer that can scan, photocopy and fax as well, and ideally a broadband or high-speed Internet connection. There are other items as well, such as a filing cabinet or cabinets, and a calendar or organizer for appointments, etc.

One thing worth pointing out is that you should buy the best equipment you can afford. Since you’re going to be using it quite a bit, it needs to be reliable – so spend the extra money when getting it; it’ll be worth it in the long run.

Expanding Your Virtual Office
Now that you’re set up, you can decide how you want to run your office. For example, is your business a small, entrepreneur-type one where you sell a product online, and then dropship direct from a supplier? Or is it more a consultancy approach, where you offer specialized services? Whichever it is, you can run all your back-up from your virtual office.

Dropshipping is an excellent way to eliminate the overhead of having to keep a physical inventory. If you have your own website, for instance, your customer can buy from you, and the sale will then be directed to your suppliers, who will then send it out on your behalf. You then pay your supplier at the end of the month. Your customer doesn’t know that your office is your 2nd bedroom – as far as they’re aware, they’re dealing with an international company.

Even if you need to meet customers, clients or suppliers , and you’re working from a virtual office, this isn’t a problem. Simply arrange to meet for lunch – this keeps everything informal, while still offering the image of a professional and expansive business. If clients or suppliers are not close enough to meet in person, you can hold teleconferences or even video conferences.

With technology continuing to improve, it’s no surprise that so many small businesses are starting up, and using a virtual office to build their brand. See what this type of office can do for your business.

Once you know the types of products you’ll be selling it’s time to start making a list of potential dropshippers. Of course, there’s no reason you can’t work with several dropshippers at a time, each carrying a different line of products; but, it’s imperative that you thoroughly check the reputation, background and references of any dropshipper. There have been many instances of small dropshipping companies setting up shop, only to disappear months later-leaving their customers in a bind. You may be able to find manufacturers that are willing to dropship; however, most times that is only for oversized and expensive products. For most product lines, your best bet will be working with large direct distributor companies who purchase products directly from several different manufacturers-most who have been distributors and dropshipping for years. Typically, it’s not the manufacturers or large direct distributors that are unreliable, it’s the small distributors who are buying from the direct distributors-and all they’re doing is marking up the price!

Narrowing your search for dropshippers

But, rest assured, finding dropshippers is easier than you think. A great place to start will be on the search engines, searching for your product category, for instance, "pet products", and "dropshipper". Be sure to thoroughly research each dropshipper you are interested in by checking references and seeing if there have been any complaints about them to the Better Business Bureau.

After you’ve narrowed down your search to a list of dropshippers you believe are reputable, it will be time to start comparing product prices, dropshipping fees, ease of ordering and billing methods. Product prices will many times be very similar from dropshipper to dropshipper, so your main focus will probably be on fees, ordering system and billing.

Dropshipping fees

Every dropshipper will tack on fees to cover the handling of each order. They might add a flat fee to each order or a percentage fee of order total. These fees are in addition to the actual shipping charges. It would be in your best interest to make a chart using the same or similar product items and see what the actual fees charged from each dropshipper would be.

Ordering and billing

The way you place each order with a dropshipper varies greatly. With some, you will need to phone in or email the order; others may want you to fax it. However, the most convenient of all will be if the dropshipper has an online ordering system. Each order will take just a minute or so to input and many are compatible with Yahoo or other ordering systems so uploading your customer’s order to the dropshipper’s site is instant. Each dropshipper will have their own billing system as well-and don’t be surprised if they require a prepayment to begin. Most dropshippers will bill on a weekly basis, however some bill at the end of the month. You will also need to find out if they take credit cards or checks.

So, while other online retailers may have had problems with a select few dropshippers in the past, you now have enough information to make your search easier. Remember, the more research you do before working with a dropshipper, the fewer problems you will end up having.